US and UK saw respective deal volume reducing to almost half; China emerges as notable exception.
Amidst a backdrop of challenging market conditions, various industries have grappled with subdued deal activity during January-July 2023. The travel and tourism industry is no different and saw deal activity decline by a massive year-on-year (YoY) 35.7%, reveals GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that 438 deals were announced in the travel and tourism industry globally during January-July 2023 compared to 681 during January-July 2022
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Volatile economic conditions continued to impact the deal-making sentiments in the travel and tourism industry in 2023 with most of the top markets experiencing double-digit decline in deal volume.”
In fact, the top two markets by deals volume, the US and the UK, saw respective deal volume reducing to almost half. The number of deals announced in the US fell by 45% from 218 to 120. Meanwhile, the deal volume for the UK declined by 43.8% from 80 to 45.
India, Australia, France, South Korea, Japan, The Netherlands, and Italy witnessed YoY decline in deal volume by 16.7%, 21.7%, 19%, 5.9%, 60%, 31.3% and 10%, respectively. However, China emerged as a notable exception and registered 12% YoY growth in deal volume.
In terms of regions, Europe, Asia-Pacific, North America, Middle East and Africa and South and Central America witnessed YoY decline in deal volume by 44.8%, 14.4%, 44.6%, 13%, and 20%, respectively, during January-July 2023.
All the deal types under coverage witnessed YoY decline in deal activity. The number of mergers and acquisitions (M&A), private equity and venture financing deals declined by 37.5%, 36.8% and 29.7%, respectively, during January-July 2023.
Bose concludes: “While markets grappled with volatility, the contrasting trajectory of China’s deal volume demonstrates the industry’s inherent resilience. As the industry charts its course through uncertainty, it continues to unveil pockets of potential and prospects for revival.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.